The Indonesian ore export ban has recently come into effect, namely, the Indonesian government will stop all ore exports, and the minerals must be smelted or refined in Indonesia before being exported. The move means that Indonesia's iron ore concentrate imports from the Jiangyin Port will continue for many years, but it will have positive significance in terms of reducing trade risks.
According to Jiangyin Inspection and Quarantine Bureau, iron ore mines are high-risk imported products. The original ore has not been processed by crushing, sieving, beneficiation, etc., therefore, the particle size is large, the content of impurities is high, the sampling is difficult to detect, and the grade fluctuation is large. At the same time, there is also the risk of entraining hazardous quarantine organisms in this type of mineral products. In 2013, Jiangyin Port imported 28 Indonesian iron ore mines. There were 11 batches of raw ores, of which 8 batches were unqualified. Due to climatic reasons, Southeast Asia has a lot of rainwater. When lots of raw ore arrives in Hong Kong, weeds grow on the surface of the cargo. Therefore, the Bureau adopted mandatory quarantine measures. A year ago, a domestic economic and trade company rushed to import a batch of 7,000 tons of ore before the entry into force of the Indonesian ban. After inspection by the Jiangyin Bureau, the iron content was only 36.3% and the silicon dioxide content was as high as 36.6%. The iron content is nearly 5 percentage points lower, and the 45% benchmark value with the foreign trade contract is very different. Silicon dioxide is 11% higher. The importer’s foreign compensation issues are still being negotiated. Similar to the Indonesian ore, the quality of the Mexican iron ore mine imported from the Jiangyin port in 2013 was also unqualified. It can be seen that the import trade of iron ore concentrate is at a high risk and importers are advised to reduce imports of such products.
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